Those getting mortgages prior to last few weeks were "likely the last" to lock in at historically low rates, says the NAR's Larry Yun following this morning's disappointing Pending Home Sales report.

That report was for October, but in more current news, mortgage applications dove another 9.4% in the week ended Nov. 25 (seasonally adjusted). They've been on a downward track for a few weeks, with the speed mostly picking up amid the sharp rise in rates since the election.

Turning to rates, the 10-year Treasury yield is carving out a new 12-month-plus high, up 11 basis points to 2.40%.

This morning's housing starts for October was off the charts - rising 25.5% from September to the fastest pace in nine years. Stripping out the notoriously volatile multifamily starts still leaves single family starts up 10.2% from September.

Of course, interest rates continue to rise - with the 10-year Treasury yield up another three basis points to 2.26% - but the builders can worry about that another time.

The S&P 500 is ahead 0.35%, with the homebuilders are outperforming by a mile.

With the go-shop period for WCI Communities (NYSE:WCIC) ending with no offers superior to Lennar's (NYSE:LEN) $23.50 per share bid, analyst Buck Horne upgrades Lennar to Strong Buy.

The deal, he says, could immediately add $0.15 per share to Lennar's fiscal 2017 results. Taking control of WCIC's 14K+ controlled homesites in Florida is a "unique opportunity" in Lennar's core geography at a "compelling" valuation, says Horne. The combined company will be the dominant homebuilder in Florida for years to come.

The homebuilders have mostly had a rough run of it since interest rates began rising late this summer, but Lennar (NYSE:LEN) has suffered more than most peers, down 13.75% over the last three months vs. a 7.8% decline for the ITB.

It's an outlier to the upside today though, with a 1.25% advance on the back of an upgrade to Buy at Buckingham Research.

LMC intends to develop and own Class A apartment communities in 25 target markets throughout the country.

LMC launched in 2011, and currently has 13.3K units in 45 communities operating or under construction. Lennar President Rick Beckwitt says the strategy at this point in the cycle is to "build to own" rather than "build to sell."

The Lindsey Group's Peter Boockvar calls this month's print "ebullient," but says the key to sustain things will be the behavior of the first-time homebuyer. We're at a 50-year low in the homeownership rate - will potential first-timers continue to prefer renting? The area most in need of new homes are those priced below $250K (to better compete against renting), but margin issues don't make this a terribly profitable segment for homebuilders.